Europe midday: Siemens, chip stocks lift markets to new highs

(Sharecast News) - Strong gains in France and Germany propelled the Stoxx 600 benchmark to a new all-time high on Thursday, with markets extending their winning streak to a fifth day. The Stoxx 600, which on Wednesday surpassed its previous record set in March, was up a further 0.7% at 568.77 by 1300 CEST.

London's FTSE 100, already trading at its own record highs, was up just 0.1%, while the Milan's FTSE MIB and Madrid's IBEX 35 gained 0.3%. However, Paris's CAC 40 had surged 1.1% and Frankfurt's DAX jumped 1.2%.

Even US stock futures were pointing to small gains on Wall Street despite a government shutdown in Washington, which will delay the release of key labour-market data over the coming days and cloud the outlook for monetary policy.

"Yesterday's ADP payrolls figure came in sharply weaker at -32k, with the previous month revised down to -3k. The data emboldens calls for the Fed to ease in the months ahead, even if much of the weakness stems from an annual adjustment tied to BLS data," said Joshua Mahony, chief market analyst at IG.

"With the BLS expected to remain closed due to the government shutdown, traders are treating the ADP release as the main event in the likely absence of tomorrow's jobs report."

In economic data, eurozone unemployment ticked higher in August, rising to 6.3% from a record low of 6.2% in July, according to Eurostat, defying expectations for a flat reading.

Meanwhile, Swiss inflation held steady at an annual rate of 0.2% in September, in line with August but slightly under the pick up to 0.3% expected by the market.

Chip stocks surge

Semiconductor stocks were performing, including BE Semiconductor Industries and ASML, tracking Asian peers higher overnight as AI sentiment continues to build following a massive deal struck between Samsung, SK Hynix and OpenAI's Stargate initiative.

Heavyweight Siemens was providing a big lift in Frankfurt on reports that the company is exploring a potential sale of its 71% stake in medical equipment group Siemens Healthineers.

Siemens Energy was also rising strongly after Berenberg hiked its target price for the stock from €75 to €122, despite a more than doubling of the share price so far this year. "We remain bullish about the company as we expect the demand environment to continue to be favourable - supporting orders - and due to the potential for medium-term margins to be delivered above guidance," the broker said.

Credit-checking company Experian was a heavy faller in London, tracking US peers TransUnion and Equifax lower in after-hours trading on the news that FICO had launched a direct licence programme, allowing mortgage lenders to calculate and distribute FICO credit scores directly to borrowers.

Food group Tate & Lyle was extending losses after it downgraded its full-year profit and revenue expectations on Wednesday, while supermarket giant Tesco gained after lifting full-year guidance following a strong first half fuelled by the warm summer weather.